EU leaders commit to a coordinated response to high energy prices

Leaders of the European Union have committed to a coordinated response to high energy prices during a summit in Brussels. The leaders of member states, including Slovenian Prime Minister Janez Janša, discussed the issue during a session focused on the competitiveness of the European economy, with energy prices linked primarily to the war in the Middle East. The conclusions of the summit, published late at night, emphasized that the current situation requires an urgent coordinated European response in the form of targeted and temporary measures, while taking into account the specific circumstances of individual member states and protecting the single market. The leaders welcomed the European Commission's proposal to delay the start of applying provisions of the methane emissions prevention regulation related to importers' obligations for one year. They also welcomed the commission’s intention to extend the validity of more flexible rules for granting state aid to the most affected industrial sectors. Brussels was urged to examine and, if necessary, propose further short-term measures to address rising energy prices, taking into account the specific circumstances of member states, including differences in electricity prices. The leaders also called on the European Commission to update its assessment of the impacts of the ETS 2 system. During discussions on economic competitiveness, attention was also given to the EU emissions trading system (ETS). According to reports from Politico, the leaders devoted much attention to both the revision of the existing ETS 1 system and the introduction of a scheme for road transport and the construction sector under ETS 2. Several countries, including Italy, Poland, the Czech Republic, and Hungary, reportedly called for delaying the implementation of ETS 2 for another two years. Implementation had already been postponed once from 2027 to 2028. Most other countries rejected this additional delay. In the conclusions reached after the afternoon discussion among the leaders, the European Commission was asked to update its evaluation of all impacts of the ETS 2 system. The leaders also spoke about global macroeconomic imbalances, particularly focusing on unbalanced trade relations with China. The conclusions called for continuing dialogue that must yield results and establishing new instruments to address these imbalances, although China was not mentioned specifically. The summit also addressed the long-term budget of the Union. Leaders did not appear optimistic about concluding the agreement on the long-term budget of the Union by the end of the year. Discussions also covered preparations for the expansion of the Union. The conclusions of the European Council on enlargement do not mention a timeframe for completing negotiations with Montenegro. The European Council welcomed the work on preparing the accession agreement with Montenegro. It noted the Irish presidency's intention to strive for temporarily closing remaining negotiation chapters, provided Montenegro implements appropriate reforms. An unofficial draft of the conclusions indicated that the Council presidency aimed to conclude a temporary closure of all chapters with Montenegro by the end of the year, provided Montenegro carries out the necessary reforms. However, the adopted conclusions do not explicitly mention a timeframe for completing negotiations with Montenegro.